HomeMy WebLinkAbout6.5 Motion to waive the rules requiring two readings of an Ordinance and Adopt AN ORDINANCE MAKING CERTAIN AMENDMENTS TO THE ANNUAL BUDGET ADOPTED FOR THE FISCAL YEAR COMMENCING JANUARY 1, 2022 AND ENDING DECEMBER 31, 2022Mr�GauC �'d'+rt;�iect
Subject• •MONEY
PURCHASE
MISSIONSQUARE•
INTERNATIONAL ASSOCIATIOK
RETIREMENT • •
Meeting June 21, 2022 - REGULAR MEETING OF THE MOUNT
PROSPECT VILL. •
Fiscal Impact false
Dollar Amount
Budget Source
Category CONSENT AGENDA
Type Consent
Information
On June 19, 2007, Resolution 27-07 was signed to establish a money purchase retirement
plan (401(a)) plan with ICMA-RC (now Mission Square) for eligible participants. Per IRS
guidelines, the Village is required to take action on this 401(a) plan by July 2022. Options
available are to restate the plan with current provisions, amend the plan, or terminate the
plan.
The last contribution by either Village or employee into this plan was December 2009. On
June 10, 2022, the total plan balance was $295,453.54. There are thirteen (13) individuals
that have funds in the plan. Only two (2) are currently employed with the Village, while the
rest are either retired or separated from service.
Mission Square has advised that once the plan is terminated, those with a fund balance in
the plan have up to a year to rollover their account or take a distribution. Mission Square
will send a letter to each participant, advising them of their options and the timeframe for
action. If they do not take action by the deadline, the balance will be automatically
distributed to the participant and they will be responsible for any tax liability.
It is important to note that the Village provides three options for retirement savings. These
options are separate from the pension benefit and are not employer -funded. The Village
offers 457(b) plans through both Mission Square and Nationwide. If an employee is IMRF
eligible, they have a third option, to deduct up to 10% of their reportable earnings as
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voluntary additional contributions.
Village staff recommends that plan 106330 be terminated.
Alternatives
1. Terminate 401(a) plan 106330.
2. Action at the discretion of the Village Board.
Staff Recommendation
Staff recommends approving the resolution to terminate plan number 106330
effective 06/21/2022.
ATTACHMENTS:
106330 Letter of Intent to Terminate Plan.pdf
Resolution to Adopt Plan 27-07 06192007 .pdf
Resolution Mission Square 106330 termination.pdf
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MAYOR
Paul Wm. Hoefert
TRUSTEES
Agostino S. Filippone
Terri Gens
John J. Matuszak
Richard F. Rogers
Colleen E. Saccotelli
Michael A. Zadel
Village of Mount Prospect
50 S. Emerson Street, Mount Prospect, Illinois 60056
June 21, 2022
MissionSquare Retirement
P.O. Box 96220
Washington, DC 20090-6220
Re: Letter of Intent to terminate plan 106330
To Whom It May Concern,
VILLAGE MANAGER
Michael J. Cassady
VILLAGE CLERK
Karen Agoranos
Phone: 847/392-6000
Fax: 847/392-6022
www.mountprospect.org
The Village of Mount Prospect would like to terminate plan number 106330 This is an old 401(a) plan to
which no contributions have been made since December 31, 2009. Please terminate the plan effective
June 21, 2022. Our understanding is that any individuals with a balance in the plan will be notified of
their opportunity to transfer or disperse their funds within one (1) year.
If you have questions, I can be contacted at (847) 818-5276.
Sincerely,
�li�ri6R. /7zalz/zcuo
Amit Thakkar
Director of Finance
HAN/at
Cc: Director of Human Resources Heidi Neu
Deputy Director of Finance Jennifer Fitzgerald
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RESOLUTION NO. 27-07
A RESOLUTION FOR A LEGISLATIVE BODY RELATING TO
A MONEY PURCHASE PLAN
WHEREAS, the Village of Mount Prospect has employees rendering valuable services; and
WHEREAS, the establishment of a money purchase retirement plan benefits employees by providing
funds for retirement and funds for their beneficiaries in the event of death; and
WHEREAS, the Village of Mount Prospect desires that its money purchase retirement plan be
administered by the ICMA Retirement Corporation and that the funds held in such plan be invested in the
Vantage Trust, a trust established by public employers for the collective investment of funds held under
their retirement and deferred compensation plans:
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: The Village of Mount Prospect hereby establishes or has established a money purchase
retirement plan (the "Plan") in the form of the ICMA Retirement Corporation Governmental Money
Purchase Plan & Trust, pursuant to the specific provisions of the Adoption Agreement attached hereto
and made a part hereof as Exhibit "A". The Plan shall be maintained for the exclusive benefit of eligible
employees and their beneficiaries.
SECTION TWO: The Mayor and Board of Trustees of the Village hereby execute the Declaration of Trust
of the Vantage Trust, and attached hereto as Appendix B, intending this execution to be operative with
respect to any retirement or deferred compensation plan subsequently established by the Village of
Mount Prospect, if the assets of the Plan are to be invested in Vantage Trust.
SECTION THREE: The Village of Mount Prospect hereby agrees to serve as trustee under the Plan and
to invest funds held under the Plan to appropriate departments.
SECTION FOUR: The Assistant Village Manager shall be the coordinator for the Plan; shall receive
reports, notices, etc., from the ICMA Retirement Corporation of the Vantage Trust; shall
cast, on behalf of the Village of Mount Prospect, any required votes under the Vantage Trust; may
delegate any administrative duties relating to the Plan to appropriate departments; and
SECTION FIVE: The Village of Mount Prospect authorizes the Assistant Village Manager to execute all
necessary agreements with the ICMA Retirement Corporation incidental to the administration of the Plan.
SECTION FIVE: This Resolution shall be in full force and effect upon its passage and approval in the
manner provided by law.
AYES: Corcoran, Hoefert, Juracek, Zadel
NAYS: None
ABSENT: Korn, Wilks
PASSED and APPROVED thigg*r of June 2007.
4
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
PLAN NUMBER 10- (+330
The Employer hereby establishes a Money Purchase Plan and Trust to be known as
ftlomw PyWodr _5i ,A.)t0A AAAJ1A46N►6Q?' PLAN (the "Plan") in the form of the ICMA RC Governmen-
tal Money Purchase Plan and Trust. [906]
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
Yes _.X_ No
If yes, please specify the name of the defined contribution money purchase plan which this Plan hereby amends and
restates:
I. Employer: ULLLA146 OF MDvuT i20SAKCT [902]
II. The Effective Date of the Plan shall be the first day of the Plan Year during which the Employer adopts the Plan,
unless an alternate Effective Date is hereby specified: Of • 6 l- ADdi
III. Plan Year will mean:
X) The twelve (12) consecutive month period which coincides with the limitation year. (See Section 5.03(g) of
the Plan.)
( ) The twelve (12) consecutive month period commencing on and each anniversary thereof.
IV. Normal Retirement Age shall be age Ss, (not to exceed age 65). [2$$]
V. ELIGIBILITY REQUIREMENTS:
1. The following group or groups of Employees are eligible to participate in the Plan:
All Employees
All Full -Time Employees
Salaried Employees
Non-union Employees
Management Employees
Public Safety Employees
General Employees
Other (specify below)
666 AIYAUAW) T I
The group specified must correspond to a group of the same designation that is defined in the statutes,
ordinances, rules, regulations, personnel manuals or other material in effect in the state or locality of the
Employer.
MPP Adoption Agreement 1/30/2006
5
2. The Employer hereby waives or reduces the requirement of a twelve (12) month Period of Service for
participation. The required Period of Service shall be h3 J A (write N/A if an Employee is eligible to
participate upon employment).
If this waiver or reduction is elected, it shall apply to all Employees within the Covered Employment
Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The minimum age requirement
is NJA_ (not to exceed age 21. Write N/A if no minimum age is declared.)
VI. CONTRIBUTION PROVISIONS
1. The Employer shall contribute as follows (choose one):
(� Fixed Employer Contributions With Or Without Mandatory Participant Contributions.
The Employer shall contribute on behalf of each Participant • 26' % of Earnings or $ for the Plan
Year (subject to the limitations of Article V of the Plan). A Participant is required to contribute (subject to the
limitations of Article V of the Plan)
(i) % of Earnings, 77 See A -MAC N/ff" r 4+ 3
(ii) $ , or
(iii a whole percentage of Earnings, as designated by the Employee in accordance with guidelines and
procedures established by the Employer
for the Plan Year as a condition of participation in the Plan. (Write "0" if no contribution is required.) If
Participant Contributions are required under this option, a Participant shall not have the right to discontinue
or vary the rate of such contributions after becoming a Plan Participant.
The Employer hereby elects to "pick up" the Mandatory/Required Participant Contribution.
X Yes No [621]
[Note to Employer: Neither an IRS advisory letter nor a determination letter issued to an adopting Employer
is a ruling by the Internal Revenue Service that Participant contributions that are picked up by the Employer
are not includable in the Participant's gross income for federal income tax purposes. The Employer may seek
such a ruling.
Picked up contributions are excludable from the Participant's gross income under section 414(h) (2) of the
Internal Revenue Code of 1986 only if they meet the requirements of Rev. Ruls. 81-35 and 81-36, 1981-1
C.B. 255, and 87-10, 1987-1 C.B. 136. Those requirements are (1) that the Employer must specify that the
contributions, although designated as employee contributions, are being paid by the Employer in lieu of
contributions by the employee; (2) the employee must not have the option of receiving the contributed
amounts directly instead of having them paid by the Employer to the plan; and (3) the required specification
of designated employee contributions must be completed before the period to which such contributions
relate.]
( ) Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant _% of Earnings for the Plan Year (subject to
the limitations of Article V of the Plan) for each Plan Year that such Participant has contributed % of
Earnings or $ . Under this option, there is a single, fixed rate of Employer contributions, but a Partici-
pant may decline to make the required Participant contributions in any Plan Year, in which case no Employer
contribution will be made on the Participant's behalf in that Plan Year.
MPP Adoption Agreement 1/30/2006
i�
(�) Variable Employer Match Of Participant Contributions.
The Employer shall contribute on behalf of each Participant an amount determined as follows (subject to the
limitations of Article V of the Plan):
% of the contributions made by the Participant for the Plan Year (not including Participant contributions
exceeding % of Earnings or $
PLUS % of the contributions made by the Participant for the Plan Year in excess of those included in the above
paragraph (but not including Participant contributions exceeding in the aggregate % of Earnings or $�
Employer Contributions on behalf of a Participant for a Plan Year shall not exceed $ or % of Earnings,
whichever is _ more or _ less.
2. Each Participant may make a voluntary (unmatched), after-tax contribution, subject to the limitations of Section 4.05
and Article V of the Plan.
Yes
X No
Employer contributions and Participant contributions shall be contributed to the Trust in accordance with the
following payment schedule:
SEE A r AE uY .�-
VII. EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a) Overtime Yes X No
(b) Bonuses Yes X No
VIII. LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which any Participant in this Plan is (or was) a partici-
pant or could possibly become a participant, the Employer hereby agrees to limit contributions to all such plans as provided
herein, if necessary in order to avoid excess contributions (as described in Sections 5.02 of the Plan).
1. If the Participant is covered under another qualified defined contribution plan maintained by the Employer, the
provisions of Section 5.02(a) through (f) of the Plan will apply unless another method has been indicated below.
( ) Other Method. (Provide the method under which the plans will limit total Annual Additions to the Maximum
Permissible Amount, and will properly reduce any excess amounts, in a manner that precludes Employer
discretion.)
2. The limitation year is the following 12 -consecutive month period:
MPP Adoption Agreement 1/30/2006
ri
IX. VESTING PROVISIONS
The Employer hereby specifies the following vesting schedule, subject to (1) the minimum vesting requirements as
noted and (2) the concurrence of the Plan Administrator.
Years of
Service Percent
Completed Vestin> [234 239]
Zero b %
One 0 %
Two 0 %
Three 0 % 2
Four 0 % 4 MEQ
Five 106 %
Six %
Seven %
Eight %
Nine %
Ten %
X. Loans are permitted under the Plan, as provided in Article XIII:
Yes No [751]
XI. The Employer hereby attests that it is a unit of state or local government or an agency or instrumentality of
one or more units of state or local government.
XII. The Plan Administrator hereby agrees to inform the Employer of any amendments to the Plan made pursuant
to Section 14.05 of the Plan or of the discontinuance or abandonment of the Plan.
XIII. The Employer hereby appoints the ICMA-RC as the Plan Administrator pursuant to the terms and condi-
tions of the ICMA-RC GOVERNMENTAL MONEY PURCHASE PLAN & TRUST.
The Employer hereby agrees to the provisions of the Plan and Trust.
XIV. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption Agreement
may result in disqualification of the Plan.
XV. An adopting Employer may rely on an advisory letter issued by the Internal Revenue Service as evidence that
the Plan is qualified under section 401 of the Internal Revenue Code.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this day of
, 200
4 MPP Adoption Agreement 1/30/2006
Attachment #1
• Village Manager
• Assistant Village Manager
• Finance Director
• Deputy Finance Director
• Community Development Director
• Deputy Community Development Director
• Human Services Director
• Deputy Human Services Director
• Police Chief
• Deputy Police Chief
• Fire Chief
• Deputy Fire Chief
• Public Works Director
• Deputy Public Works Director
• Human Resources Director
• Information Technology Director
• Village Clerk
�f
Attachment #2
Employees may contribute a maximum of 2.5% of wages at 10 years of
service. The example of the break down of the contribution level maximum
per year is below.
Years of
Employer
Employee
Service
Contribution
Contribution
Total
1
.25%
.25%
.5%
2
.5%
.5%
1 %
3
.75%
.75%
1.5%
4
1%
1%
2%
5
1.25%
1.25%
2.5%
6
1.5%
1.5%
3%
7
1.75%
1.75%
3.5%
8
2%
2%
4%
9
2.25%
2.25%
4.5%
10
2.5%
2.5%
5%
10
Attachment #3
1. Any employee hired into the positions listed in Attachment #1 after July 1,
2007 would be required to work for the Village a minimum of five years
and contribute to the plan for a minimum of five years before the funds
contributed by the Village in matching funds would be available to the
employee at the time of termination or retirement from Village
employment.
2. Employees that meet the criteria in terms of service tenure or already
appointed to the positions listed in Attachment #1 would be eligible to
participate immediately without a waiting period beyond what is already
defined.
3. In order to participate in the plan the employee must contribute a minimum
of .25% of their annual wages for each year of service the employee has
with the Village. The Village will match the employee contribution to a
minimum of .25% of wages for each year of service to the Village.
4. Employees may contribute a maximum of 2.5% of wages at 10 years of
service. The example of the break down of the contribution level maximum
per year is provided in Attachment #2.
5. Participation is voluntary in the program.
6. The funds that the employee and the employer contribute are available to
the employee upon termination or retirement. There is no minimum age for
the employee to attain in order to obtain the funds.
7. All contributions will be made on a per payroll basis.
8. There are no loan provisions available to the employee.
H:\ADMN\DS\DH 401a Contribution Attachments.doc
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RESOLUTION NO.
A RESOLUTION TERMINATING A MONEY PURCHASE RETIREMENT PLAN 401(a)
WITH MISSIONSQUARE RETIREMENT (FORMERLY INTERNATIONAL CITY
MANAGERS ASSOCIATION RETIREMENT CORPORATION)
WHEREAS, the Village of Mount Prospect established a Money Purchase Retirement
Plan, 106330, with the International City Managers' Association Retirement Corporation
(now known as MissionSquare) on June 19, 2007 through adoption of Resolution No. 27-
07; and
WHEREAS, plan 106330 is an outdated 401(a) plan that has had zero (0) contributions since
December 31, 2009; and
WHEREAS, the Village of Mount Prospect seeks to terminate plan 106330 effective June
21, 2022.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES
OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE
EXERCISE OF THEIR HOME RULE POWERS:
SECTION ONE: The Board of Trustees of the Village of Mount Prospect do hereby express
its intent to terminate plan 106330, a Money Purchase Retirement Plan 401(a), with
MissionSquare Retirement (formerly International City Managers' Association Retirement
Corporation) effective June 21, 2022.
SECTION TWO: That this Resolution shall be in full force and effect from and after its
passage and approval in the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this 218t day of June, 2022.
Paul Wm. Hoefert
Mayor
ATTEST:
Karen M. Agoranos
Village Clerk
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